Global from Day One Seed Fund

Global from Day One Seed Fund

Media release

Embargoed till 1am, 19 September 2012

Start-up fund aims to take 20 companies global A new start-up investment fund – the Global from Day One Fund – has successfully closed its fundraising.

The fund has up to $4.6 million available for investment – having raised $2.3 million from private investors and with access to matching co-investment from the New Zealand Venture Investment Fund. It aims to invest into around 20 start-up companies with international ambitions over the next four years.

Its investors include some of New Zealand’s most experienced and active early stage investors, as well as a number of international investors who are interested in deal flow coming from New Zealand. Nationally-focused early stage investor Sparkbox Ventures will manage the fund. The investment committee involves top start-up investors from across the country.

Sparkbox chairman Andrew Duff said that New Zealand has some highly creative business people, but the big challenge for entrepreneurs is getting their offering into offshore markets.

“Many ideas have traditionally struggled due to lack of initial investment, cash flow, experience and connections. Even more so today, the speed to market is seen as critical. Global from Day One will look to bridge this gap for companies which have an immediate international perspective and need support to achieve that.

“The fund expects to focus on areas of cloud based technology, disruptive technologies, mobile and modern media, IP-driven niche market products, and business models. These are all sectors where businesses can scale up very quickly.”

The recently appointed Angel Association chair, ICE Angels investor Ray Thomson, will chair the fund’s investment committee. Other members include Angel Association deputy chair and Angel HQ investor Marcel Van Den Assum, Adam Clark - co-founder of New Zealand software company M-Com, Sparkbox’s Greg Sitters, and Ken Erskine from ICE Angels. Ray Thomson said the fund will look at proposals from all over New Zealand.

“The fund will actively source investments nationwide. There is a pipeline of interesting investments and we are currently considering two which are likely to be funded shortly. Global from Day One will not make follow on investments, so opportunities will gravitate back to angel groups, VCs and other funders for follow-on investment rounds.”

Global from Day One is linked with the New Zealand Venture Investment Fund, which will coinvest alongside the Fund in qualifying opportunities through its Seed Co-investment Fund.

NZVIF chief executive Franceska Banga said the new fund will bring new capital into the start-up investment sector after a soft period over the past year – particularly in terms of new investments.

“Global from Day One will bring in capital specifically for initial investments, which will be welcome. In a small economy like New Zealand, it is important that we see angels collaborating to bring deals together and to increase the capital available for investment.”

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